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Topic History of : Sample question, not sure I understand the answer

The answer would be A. They are telling you that the project was canceled, not asking you why. SPI is really an indication of project completion. At the completion of the project the SPI will always be 1.0 regardless of how long it takes to get there. Since this project was closed and the SPI was only 0.71 it indicates that not all project deliverables were completed. Therefore the only possible solution would be A.

In one of the many sample exams I have done so far, the following question was included (
Oliver Lehmann
):

You found the following earned value analysis information for a project that was recently closed-out: SPI = 0.7, CPI = 1.0

a. The project has been cancelled while it was executed. At that time the project was behind schedule and on budget.
b. The project's deliverables have all been finished. The project came in behind schedule but on budget.
c. The project's deliverables have all been finished. The project came in ahead of schedule but on budget.
d. The project's deliverables have all been finished. The project came in on schedule but over budget.

Am I correct in thinking that the reason that answer "a" is the correct answer is that any project where the SPI (or CPI) is significantly (i.e. more than 0.02 difference) below 1.0 would automatically be cancelled?